Pfizer's good news about its COVID-19 vaccine led to the strengthening of the US dollar against other currencies. In fact, the USD / CHF pair was the one that benefitted the most from it, especially since its quotes were at very low levels for the year.
This favors mid-term speculators who exploit the buy-low-sell-high principle, which is especially effective in the USD / CHF pair.
And since there is no doubt that the quotes will increase further in the market, the best action right now is to open long positions, all according to the plan below:
As shown on the daily chart, the pair has already formed a three-wave (ABC) pattern in which wave "A" is the bullish impulse created by the good news from Pfizer.
Taking this scenario into account, long positions are best placed at 61.8% and 50% Fibonacci retracement levels, which are located at 0.91 and 0.90668, respectively. The target level will be 0.93.
However, this strategy will be irrelevant if the quote moves below 0.9.
To add to that, traders still need to manage and control the risks in order to avoid losing profit. As we all know, trading in this market is very precarious and uncertain, but also very profitable provided that we use the right strategies.
Price Action and Stop Hunting were used for the above strategy.
Good luck!
